Category Archives: Environment

The news wires are buzzing with reaction to a landmark environmental case in which an Ecuador court ordered U.S. oil giant Chevron Corp. to pay $8.6 billion to clean up oil pollution in EcuadorÃ¢â‚¬â„¢s rain forest.

The award is believed to be the largest ever imposed for environmental contamination and could double if Chevron does not publicly apologize for the oil pollution within the next 15 days, as ordered by the judge.

Today an article in the New York Times follows up with the news that representatives for Ecuadorean villagers say they plan to pursue Chevron in more than a dozen countries where it operates in a bid to force the company to pay.

The case has been the subject of proceedings in courts in Ecuador and the U.S. for nearly 20 years.

Residents of EcuadorÃ¢â‚¬â„¢s Amazon forest, who are plaintiffs in the case, are attempting to hold Chevron liable for environmental damage they claim resulted from the operations of Texaco Inc. in the region from 1965 to 1992. Chevron inherited the suit when it acquired Texaco in 2001.

Today NPR reports that the sludge has reached the Danube River Ã¢â‚¬“ EuropeÃ¢â‚¬â„¢s second longest river Ã¢â‚¬“ though Hungarian officials are quoted as saying no immediate damage is evident.

The European Union earlier had warned that the spill could pose a serious environmental problem for 12 countries if it contaminates the Danube.

The flood, estimated at 700,000 cubic meters, or 185 million gallons, swept cars off roads, damaged bridges and houses and forced the evacuation of hundreds of residents, according to the New York Times. People who came into contact with the substance were burned through their clothes.

Authorities have ordered a criminal inquiry into the accident. It is still not known why part of the reservoir wall collapsed. The Ajkai Timfoldgyar plant is owned by Hungarian aluminum production and trade company MAL Rt.

If you’re planning on taking a drive to enjoy the beautiful fall foliage, bear in mind that‚ this is peak season for deer-vehicle collisions.

A just-released report from State Farm‚ reveals that while the number of miles driven by U.S. motorists over the past five years has increased just 2 percent, the number of deer-vehicle collisions in this country during that time has grown by ten times that amount.

State Farm estimates some 2.3 million collisions between deer and vehicles occurred in the U.S. during the two-year period between July 1, 2008 and June 30, 2010‚ an increase of 21 percent in five years.

These collisions are more frequent during the deer migration and mating season which runs from October through December. The combination of growing deer populations and the displacement of deer habitat caused by urban sprawl are producing increasingly hazardous conditions for motorists and deer.

So in which states are drivers and deer most at risk?

For the fourth year in a row, West Virginia tops the list of those states where a driver is most likely to collide with a deer. State Farm calculates the chances of a West Virginia driver striking a deer over the next 12 months at 1 in 42.

Iowa (1 in 67) is second on the list, followed by Michigan (1 in 70), South Dakota (1 in 76) and Montana (1 in 82). The state in which deer-vehicle collisions are least likely is still Hawaii (1 in 13,011).

Note: State Farm now calculates the likelihood of deer-vehicle collisions using the number of licensed drivers instead of number of registered vehicles against its claims data.

The clarification comes after rising concerns over whether flood insurance policies would cover damage to homes and businesses if oil from the Deepwater Horizon spill mixes with flood waters, comes ashore during a storm and causes pollution damage to buildings.

In a memorandum to Write-Your-Own (WYO) flood program insurer participants, James Sadler, director of claims at the NFIP, said:

FEMA states that there must first be a defined flood as described in the Standard Flood Insurance Policy (SFIP) and that damage caused by the oil in flood waters is covered subject to the provisions of the SFIP. There must also be direct physical loss to property for flood coverage to apply.

Other key points made by FEMA are:

Under the terms of the General Property Form of the SFIP (commercial buildings and contents coverages must be purchased separately), damage caused by pollutants is limited to $10,000.

Damage to residential buildings and contents from pollutants is covered up to the policy limits, under the Dwelling form and the Residential Condominium Building Association Policy form.

Damage to ground, soil or land caused by flood, oil, or flood water mixed with oil is not covered.

The cost of complying with any local or State ordinance including one that requires special removal methods for oil is specifically excluded.

There is no coverage for testing or monitoring of pollutants unless there is a law or ordinance requiring it.

FEMA or the WYO companies retain the right to subrogate, i.e. if the policyholder makes a claim against an entity who caused a loss and recovers any money, the policyholder must pay FEMA or the WYO back before they may keep any of the money.

As the New York Times reports on the lack of consensus surrounding how much oil is spilling from the Deepwater Horizon well in the Gulf of Mexico, a timely new study from across the pond says that green energy systems are essential in securing our energy supply and protecting the environment.

As a result LloydÃ¢â‚¬â„¢s says that all businesses, not just the energy sector, need to consider how they, their suppliers and their customers will be affected by energy supplies which are less reliable and more expensive.

With markets for low-carbon energy products likely to be worth at least $500 billion per year by 2050, LloydÃ¢â‚¬â„¢s says this sector holds tremendous opportunities for business, though the lack of global agreement on carbon reduction is inhibiting commitment and investments.

The report calls on governments to set clear policies and create certainty in the transition to a low carbon economy. It also urges businesses to prepare for a new set of risks as our energy system changes. Check out I.I.I. energy facts and stats.

According to the NLJ article, the suit Ã¢â‚¬“ Gulf Restoration Network and Sierra Club v. Salazar Ã¢â‚¬“ charges that the agency violated federal law by exempting oil companies that drill in the Gulf of Mexico from disclosing blowout and worst-case spill scenarios as well as plans for dealing with them before approving the companiesÃ¢â‚¬â„¢ offshore drilling plans.

For the BP Deepwater Horizon rig exploration plan, MMS had issued a notice to oil companies telling them that they didnÃ¢â‚¬â„¢t have to comply with those blowout and worst case oil spill rules, according to Earthjustice. In addition, it alleges that MMS failed to produce an analysis of potential environmental impacts in the event of a blow-out despite being required by law.

The legal challenge asks the court to invalidate the MMS practice of sending notices to oil companies informing them that they donÃ¢â‚¬â„¢t have to comply with the rules and to order review of existing offshore drilling plans that do not comply with existing rules.

The Wall Street Journal reports that lawyers are descending on the Gulf coast and preparing lawsuits over the oil spill from the sunken Deepwater Horizon rig. It notes that the regime for compensating those hurt by offshore oil spills is complex:

Meanwhile the New York TimesÃ‚ reportsÃ‚ that while President Obama has called the spill Ã¢â‚¬Å“a potentially unprecedented environmental disasterÃ¢â‚¬  and doomsday predictions abound about its impact, the spill is not unprecedented nor yet among the worst oil accidents in history.

Its ultimate impact, according to the NYT, will depend on a long list of interlinked variables, including the weather, ocean currents, the properties of the oil involved and the success or failure of the frantic efforts to stanch the flow and remediate its effects.

Both articles reflect an important point. From the liability and environmental standpoint, itÃ¢â‚¬â„¢s simply too soon toÃ‚ tell how this spill will develop and what its final impact will be. As insurers know, these kinds of events take many years to unfold.

Meanwhile, a post at the Mississippi Press blog cites experts saying that although federal disaster declarations usually follow hurricanes and other natural catastrophes, the manmade oil spill in the Gulf could conceivably qualify as well. It quotes a spokesman for Gov. Barbour saying that while officials are still focused on keeping the oil spill offshore, a disaster declaration Ã¢â‚¬Å“would be one of the options open to us.Ã¢â‚¬ 

According to FEMA data, there have been 35 major disaster declarations in 2010 so far Ã¢â‚¬“ all of which were for various weather-related events. A major disaster declaration must be requested in writing to the President by the governor of a particular state. In this request the Governor certifies that the combined local, county and state resources are insufficient and that the situation is beyond their recovery capabilities.

Ã¢â‚¬ ¢ Adding BPA to the chemical concern list on the basis of potential environmental effects

Ã¢â‚¬ ¢ Requiring information on concentrations of BPA in surface water, ground water, and drinking water to determine if BPA may be present at levels of potential concern.

Ã¢â‚¬ ¢ Requiring manufacturers to provide test data to assist the agency in evaluating its possible impacts, including long-term effects on growth, reproduction and development in aquatic organisms and wildlife.

Ã¢â‚¬ ¢ Using EPAÃ¢â‚¬â„¢s Design for the Environment (DfE) program to look for ways to reduce unnecessary exposures, including assessing substitutes, while additional studies continue.

Ã¢â‚¬ ¢ And, continuing to evaluate the potential disproportionate impact on children and other sub-populations through exposure from non-food packaging uses.

A New York Times article says the EPA action indicates the government is looking to reduce the use of BPA in food packaging, plastic bottles and other sources of exposure. The NYT page includes a list of resources from around the Web about BPA. Washington recently became the fifth state to limit the use of BPA in plastic products intended for children and sports bottles, joining Connecticut, Maryland, Minnesota and Wisconsin. Bills to ban BPA are also pending in a number of other states. Federal legislation to ban BPA in all food and beverage containers was introduced last year.

The number of vehicles on U.S. roadways has grown by 7 percent over the last five years, but the number of times those vehicles have collided with deer has jumped by 18.3 percent. In its latest study of annual deer claims, State Farm estimates 2.4 million collisions between deer and vehicles occurred in the U.S. during the two-year period between July 1, 2007 and June 30, 2009. Among the 35 states where at least 7,000 deer-vehicle collisions occur per year, New Jersey and Nebraska posted the largest increases of 54 percent. Deer-vehicle collisions also jumped by 41 percent in Kansas, by 38 percent in Florida, Mississippi and Arkansas, by 34 percent in Oklahoma and by 33 percent in West Virginia, North Carolina and Texas. For the third year in a row, West Virginia tops the list of those states where a collision with a deer is most likely. State Farm puts the chance of a West Virginia vehicle colliding with a deer in the next 12 months at 1 in 39. Michigan (1 in 78) remains second on that list followed by Pennsylvania (1 in 94), Iowa (1 in 104) and Montana (1 in 104). The state in which deer-vehicle collisions are least likely is still Hawaii (1 in 9,931). The average property damage cost of these incidents was $3,050, up 3.4 percent from a year ago. Check out I.I.I. tips on avoiding deer-vehicle collisions.